Business Education SeriesChoosing The Right Business Entity

Presented by:

“you would have to be brain dead not to start your own business”

Sandy Botkin, CPA, Esq.

www.laughlinusa.com

•Corporate Compliance

•Education

•Choosing The Right Entity

•Professional Assistance

•Retirement Planning

•Estate Planning

•Exit Strategies

•Buy Sell Agreements

•Trusts

•On-Going Support

The Complete Solution

Choosing The Right Entity

• Personal Asset Protection

• Additional Fringe Benefits

• Added Tax Savings

• Enhanced Credibility

• Professional Image

• Financial Privacy

1-888-386-3811

Different Types of Business Entities

Which is right for you?

Sole Proprietorship

General Partnership

Corporation

Limited Liability Company

Sole Proprietorship

•Simplest Form Of Doing Business

•No Paperwork To File

•Single Level Of Taxation

•Low Cost

Pros vs. Cons

•No Liability Protection

•Self-employment Tax

•Single Level Of Taxation

•Limited Tax Deductions

You Are A Target!

Limited Partnership

•Separate Legal Entity

•Income Splitting

•Single Level Of Taxation

Pros vs. Cons

•Limited Tax Deductions

•Formal Documentation

•Loss of Control

•Annual Filings

1-888-386-3811

Corporation (C)

•Limited Liability

•Separate Legal Entity

•Corporate Tax Deductions

•Income Splitting

•Centuries Of Case Law

•Credibility For Your Business

•Stock Options

•Easy Transfer of Ownership

Pros vs. Cons

•Formal Documentation

•Annual Filings

•Separate Tax Returns

•Potential Double Taxation

1-888-386-3811

Corporation (S)

•Limited Liability

•Separate Legal Entity

•Single Level Of Taxation

•Most Corporate Tax Deductions

•Centuries Of Case Law

•Credibility For Your Business

Pros vs. Cons

•Formal Documentation

•Annual Filings

•No Income Splitting

•Limits On Shareholders

•Limits On Owner/Employee Benefits

Limited Liability Company (LLC)

•Limited Liability

•Separate Legal Entity

•Flexible Taxation

•Management Flexibility

•No Restrictions On Membership

•Corporate Tax Deductions*

•Income Splitting*

•Credibility For Your Business

*based on tax election

Pros vs. Cons

•Formal Documentation

•Annual Filings

•Separate Tax Returns*

•Limited Case Law History

1-888-386-3811

Things To Consider

• Legal Liabilities

• Tax Implications

• Flexibility

• Future Needs

• Cost of Formation

1-888-386-3811

Key Factors When Choosing an Entity

Asset Protection

Tax Implications

Flexibility-Future

Key Factors When Choosing an Entity

Asset ProtectionTax Implications

Flexibility-Future

• Enhanced Liability Protection

• Protect Your Business

• Protect Your Personal Assets

• Protect Your Personal Wealth

Asset Protection

1-888-386-3811

What is Limited Liability?

Personal Assets:

•Home

•Bank Accounts

•Retirement

•Other Assets

Business Assets:

•Property

•Bank Accounts

•Equipment

•Cash Assets

•Other Assets

Corporation/LLCCo-mingled Life

Key Factors When Choosing an Entity

Asset Protection

Tax ImplicationsFlexibility-Future

1-888-386-3811

CORPORATIONOR LLC

WAGES

FRINGE BENEFITS

DIVIDENDS/DISTRIBUTIONS

LOANS

RENT

ROYALTIES

Money In-Money Out

Key Factors When Choosing an Entity

Asset Protection

Tax Implications

Flexibility-Future1-888-386-3811

Flexibility-Future

Do You Need To Raise Capital? Do You Want Total Control? What Is Your Exit Strategy? Are You Holding Property or Running

a Business?

1-888-386-3811

Thank You For Attending

Call 1-888-386-3811 or send me an email to receive your complimentary whitepaper outlining a side-by-side comparison of C-Corporations vs. S-Corporations.

Presented By: Randy Reesrrees@laughlinusa.com

1-888-386-3811www.laughlinusa.com